Revenues of the sports broadcast sector is estimated at over ₹9,530 crore in FY22 with TV continuing to be the largest media platform in terms of reach as well as consumer engagement for sporting events.
According to a report released jointly by KPMG India, CII and IBDF on Wednesday, the size of the sports TV broadcasting segment is pegged at ₹7,560 crore in FY22, with the digital OTT sports market estimated at about ₹1,970 crore. The TV sports broadcasting segment alone is expected to increase to ₹9,830 crore in FY26, growing at a steady CAGR of 7 per cent, it added.
“The genre has remained largely resilient to the Covid-19 headwinds and is expected to scale the 2019 highs by the close of this year. The advertiser interest in sports broadcast has grown strongly with the increasing viewership and demographic reach offered by sports properties,” the report stated.
The number of TV households in India are expected to reach 250 million by 2026 (from 210 million in 2020) with sports consumption estimated to have the highest reach among all genres on TV at 722 million in the first nine months of this year.
Stating that TV has an unparalleled reach, the report added that relevance of TV for sports consumption stems from the fact that essentially developed and shot for the large screen owing to the ability of TV to create a more engaging viewing experience compared to smartphones.
Akhilesh Tuteja, Partner and Head, Technology Media and Telecom, KPMG in India said, “Given its wider reach and interest as compared to other content genres, sports on television is one of the most monetisable genres. The television and digital OTT sports market is estimated at close to ₹10,000 crore in FY22, with sports on TV holding a lion’s share. With a large screen experience, co/family viewing and investments by broadcasters, bringing the best of cricket and other sports to Indian viewers, sport on TV is likely to remain highly relevant for the foreseeable future.”
Domestic sports leagues and India’s performance in international sporting events like the Commonwealth Games has further boosted the viewers’ engagement with sports.
“Corporates are also increasing their involvement in sports beyond advertising and are participating as franchise owners and/or engaging in grassroot development programs—thus playing an active role in the development of India as a sporting nation. These efforts set in motion a virtuous cycle, as an increasing interest in sports fuels further consumption, which is beneficial for the entire value chain including the sports broadcasters,” it stated.